QUESTION 1 (35 MARKS: 84 MINUTES) Below are the merchandising transactions between the seller (Lianjo) and the buyer (Jolian).

March	Transaction
4	Lianjo sold RM2,000 of merchandise on account, terms FOB destination, 5/10, n/30. The cost of the merchandise was RM1500 and the transportation charges of RM200 was paid as per the term.
6	Lianjo sold RM2,500 of merchandise on account, terms FOB shipping point, 2/10, n30. The cost of the merchandise was RM1600 and the transportation charges of RM250 was paid as per the term.
8	Jolian returned merchandise from the 4 March sale. Lianjo issued a RM300 credit memorandum. The cost of the merchandise return was RM180.
10	Jolian made a full payment on the 4 March sale.
15	Jolian purchased RM3,000 of merchandise on account FOB shipping point, 2/10, n/EOM. The transportation cost of RM300 was paid by Lianjo. The cost of merchandise was RM1,800.
17	Lianjo received payment from Jolian for 6 March transaction.
22	Jolian purchased RM3,000 of merchandise in cash, FOB shipping point. The transportation cost was RM300 and paid by Jolian. The cost of the merchandise was RM2,000.

REQUIRED: (b) Explain the term FOB shipping point and FOB destination. (5 Marks)